Chairperson, hon members, on behalf of the Portfolio Committee of Public Works I present the summary of its oversight visit to the Eastern Cape from 24 to 29 July 2011. The purpose was to receive progress reports from the provincial department of roads and public works and the municipalities. The focus was specifically on the implementation by the province and municipalities of the Expanded Public Works Programme, especially the accessing of the EPWP incentive grant, the eradication of mud schools and the state of the province and municipalities' asset registers.
Issues noted during the oversight visit were the following: Regarding the asset register, the Eastern Cape comprises 37% of all state land in South Africa and this affected the completion of an asset register. An estimated 3 million hectares of land in the former Transkei and Ciskei had not been surveyed. Many of the asset registers were incomplete and had no standardised template for the provincial and municipal registers.
Regarding the EPWP and access to the EPWP incentive grant, the number of municipalities eligible to access the wage incentive had increased but the draw-down of the incentive grant was often low and inconsistent. The beneficiaries from rural areas in all sectors, especially the social sector, are paid a lower stipend than the urban areas. Most of the municipalities did not achieve the 2% target of including persons with disabilities on the EPWP projects.
Regarding the eradication of mud schools and unsafe structures, innovative technologies used in the eradication of mud schools and unsafe structures in the Eastern Cape allowed for faster and more cost-effective construction. The portfolio committee was concerned that the EPWP principles of sustainable job creation and skills transfer were not always used on these projects.
After its oversight visit to the Eastern Cape municipalities, the portfolio committee made the following recommendations: The challenges experienced by municipalities in the compilation of and their management of the asset register must be resolved. The Portfolio Committee of Public Works recommends that the Minister of Public Works review the current Government Immovable Asset Management Act, Act 19 of 2007, with the aim of amending it to include the local government sphere.
Regarding the EPWP and accessing the incentive grant, the portfolio committee recommends that the province and the municipalities must ensure that they report on the EPWP work opportunities created so that they can access the incentive grant. The stipend paid to beneficiaries in all sectors must also be reviewed, especially those paid to beneficiaries in the rural areas. The inclusion of persons with disabilities on EPWP projects as well as meeting the 2% target must be implemented.
On the eradication of mud schools and unsafe structures, using innovative construction technology proved useful. However, concerns were raised about their lifespan in comparison to conventional construction methods. The innovative constructive technology used machines to produce steel plates and this required a large outlay of capital. Small businesses were unlikely to access the technology unless it was subsidised. In conclusion, the portfolio committee learnt that the implementation of the EPWP and the completion of the asset register were negatively affected because many municipalities, particularly those in the rural areas, reported a number of challenges. The municipalities reported high percentages of poor and unemployed people. They also made specific reference to the high rate of unemployment among the youth. The municipalities lacked the required skilled personnel in key positions and reported having many vacant posts as well as people acting in positions, particularly at management level.
The national Department of Public Works reported that municipalities requested national funding for the EPWP project but underspent on the existing budget. I present the summarised report on behalf of the portfolio committee.
There was no debate.